According to the latest data from the Canadian Real Estate Association, the average residential home will now set prospective home buyers back $525,000, though affordability challenges are much more acute in the nation’s priciest markets.
Nearly all Canadians believe the average household is in too much debt, and it looks like everyone is right. The results of the Manulife Bank Debt Survey shows that 40% of indebted Canadians do not expect to escape their debt in their lifetimes.
With would-be buyers finally adjusting to the stress test and interest rates looking like their taking a breather, 2019 may be a strong year for home sales in Toronto and other major markets in Canada.
At the end of 2018, I wrote about the idea of reducing or repealing the mortgage stress test. Now I want to suggest some possible amendments that would make the stress test more fair now that interest rates are rising and home prices are still high.